Landlords' Energy Performance Certificates (epc) - an Overview

Under new EU legislation from the 1st Octoberof a building designed to be used independently or
2008, when buildings are to be rented out, theseparately. An EPC is not required, for each
landlord is responsible for ensuring a validindividual room. However, an EPC will be required
certificate is made available to all prospectiveon the whole building if it sold, rented or
tenants. So you act ahead of the game andconstructed. It will also be required on
commission an EPC from a domestic energyself-contained units within the hall, e.g. a
assessor, but what do you do with it now. I hearself-contained caretaker's flat, if this is sold, rented
you ask how and when should I supply theor constructed.
Energy Performance Certificate?These are great to compare your individual
The Energy Performance Certificate (EPC) andcircumstances with to gauge your new upcoming
recommendation report must be made availableobligations. If in doubt there is a new EPC helpline
free of charge by the seller or a landlord to athat has been recently established tel no. 0845
prospective buyer or tenant at the earliest3652468.
opportunity and no later than:Many landlords are taking a proactive approach
- when any written information about the buildingtowards commissioning Energy Performance
is provided in response to a request forCertificates for their properties and not waiting to
information received from the prospective buyer;the last minute which could mean longer periods
orwithout tenants due to the EPC being required
- when a viewing is conducted; orbefore marketing can commence.
- if neither of those occur, before entering into aWithin each Energy Performance Certificate there
contract to sell or let.will often be recommendations of energy
An energy performance certificate does not haveefficiency improvements which correlate with the
to be made available if:Landlord Energy Saving allowance (LESA )
- the seller believes that the prospective buyer orscheme. This scheme is a taxable allowance for
tenant is unlikely to have sufficient funds toenergy efficient improvements. Landlords are able
purchase or rent the property or is not genuinelyto apply for energy efficiency grants/allowances
interested in buying or renting that type ofand have been able to since the Landlord's Energy
property; orSaving Allowance (LESA) scheme was introduced
- the seller or landlord is unlikely to be prepared toon 6th April 2004 and then later expanded upon.
sell or rent out the property to the prospectiveThe improvements that Landlords can make
buyer or tenant (although this does not authorizethrough the energy saving allowance; will in most
unlawful discrimination)cases have a direct positive impact on the energy
However, there are certain circumstances whereefficiency rating of the Energy Performance
EPCs are not needed or must be obtained to aCertificate. Of course, the energy saving
greater degree than one would have initiallymeasures would need to be put in place prior to
imagined. The following are scenarios given asthe assessment taking place for this to be
examples by the department of Communities andevidenced on the EPC. However, some EPC
Local Government (DCLG).providers do offer a pre-assessment and
Case study 1assessment service. This enables landlords to
A house or flat is rented by a number of tenantsmake improvements based on the Energy
who have exclusive use of their bedrooms butPerformance Certificate recommendations and
share a kitchen and bathroom. In this case eachreceive additional certification reflecting these
tenant has a contract with the landlord for theupgrades to the property.
parts they have access to, but not for a wholeThe Landlord Energy Saving Allowance (LESA)
dwelling. An EPC is therefore not required eachallows individual landlords (and other landlords who
time a tenant moves, although one will bepay income tax) who let residential property to
required for the whole house if it is sold, rentedclaim a deduction in their income tax bill. This
as a whole or constructed.allowance allows landlords to claim back up to
Case study 2£1,500 per property for installing energy
A group of friends rent a property and there is aefficient measures and is available until 2015.
single contract between the landlord and theYou are currently entitled to claim for the
group as the contract is for the rental of a wholefollowing measures:
dwelling. An EPC is required for the whole dwelling.- loft insulation
In this case, a dwelling is taken to be a domestic- cavity wall insulation
building which is either the whole of the building or- solid wall insulation
a part altered or designed for separate use.- draught proofing
Case study 3- hot water system insulation
Individual tenants rent rooms in a hall of residence.- floor insulation.
Each room does not constitute a building or part